Acciona acquires Australian engineering company

Acciona acquires Australian engineering company

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Acciona

Spanish construction giant, Acciona has boosted its presence in Australia with an agreement to acquire construction engineering specialist, Geotech.  The deal, which values Geotech at AU$262m (£163m), is designed to accelerate Acciona’s expansion in a market that it sees as having great potential for infrastructure development.  Acciona said that Geotech brings a track record, backlog of work and know-how in mid-sized projects in Australia, a strongly established local footprint and technical capabilities that have made it a highly-valued subcontractor in large projects, particularly railway works.  The deal includes a cash payment of US$197m.  In addition, three key Geotech executives will receive a 17.6% stake in a new subsidiary, Acciona Geotech Holding.  The new company will integrate Geotech and Acciona’s future pipeline of construction projects in Australia. Acciona Construction will control 82.4% of the new subsidiary.  The deal seeks to build upon Acciona Construction and Geotech’s complementary businesses, and to create a platform for growth that can respond to the sizeable demand for infrastructure in the Australian market, estimated at AU$125bn over the next decade. The new company will be based in Melbourne.

Source: theconstructionindex.co.uk

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